• Finance

Norton Way Honda Finance

What is Personal Contract Purchase (PCP)?

With PCP you can choose the perfect vehicle for you, as well a deposit and the length of the agreement. And, you can even decide upon the maximum mileage. Once the period is over, you will then have the option to purchase the car outright for an agreed amount, which is known as the Guaranteed Minimum Future Value, or just GMFV. Or, if you don’t want to buy the car outright, you can always just return it to the lender (within agreed fair wear and tear limits) with absolutely no further obligation.

Benefits of PCP

  • Drive a brand new Honda more often
  • Flexible deposits
  • More flexible repayment options
  • Compared to a HP agreement with the same term, the repayment rate is usually lower
  • Fixed rates
  • Assurance of GMFV means you are protected against depreciation of used cars prices
  • Come the end of the agreement, you have the option to renew, return, or own the vehicle

Once the agreement is up, you can then choose from one of these three options:

Option 1 - Renew
If you decide to renew, then you can drive away in a brand new Honda. And, you can use any excess value over the GMFV as a deposit on your new vehicle.

Option 2 - Return
So long as the vehicle is in a good condition and doesn’t exceed the agreed upon fair wear and tear limits and the agreed mileage, you have nothing more to pay and can simply return the vehicle.

Option 3 - Retain
You can also choose to retain your vehicle. Pay the GMFV and you own it outright!

What is Hire Purchase?

Hire Purchase is the traditional package. Using this you can take the total cost of a vehicle of your choosing, deduct the deposit amount and choose the length of the agreement. Interest will then be added and the monthly installments will be calculated. Assuming you have met all of your payments, once the agreement has ended, the vehicle is yours outright.

Benefits of HP

  • Deposits are flexible
  • Flexible repayment terms from 12 to 60 months
  • Rates are fixed
  • Once the agreement is over, the vehicle is yours

What is Personal Contract Hire?

Personal Contract Hire, or PCH if you will, from Norton Way Honda is a contract hire agreement which is suitable for renting selected Hondas that are supplied by us. At no point will the vehicle belong to you with this agreement, so you won’t be able to go on to sell it. This agreement is mileage based and it is important that it reflects your predicted annual mileage.

With PCH from Norton Way Honda you will end up paying an agreed number of advance rentals along with the VAT followed by remaining rentals plus VAT for the contract term. Then, the vehicle should be returned to the finance house.

The benefits of Personal Contract Hire

  • Initial payments are low, and are usually 3, 6, 9 or 12 advance rentals including VAT
  • 2, 3 or 4 year rentals plus VAT at fixed rates
  • Rentals are also fixed and don’t change with interest rate movement (excluding VAT changes)
  • Road fund license included for full duration of term
  • Full term breakdown cover
  • No concerns over depreciation
  • Optional replacement vehicle available for 48 hours in the event of a breakdown attended by the AA at the roadside
  • Optional maintenance packages available, which means service, repair and maintenance costs are budgeted for
  • Mileage amendments can be made to the contract during the term if required

Call the Sales Team at Norton Way Honda for further information about our car finance products.

  • This top quality product keeps vehicles in pristine condition by providing cover against repairing costs.

  • As a Honda driver, you obviously appreciate the reliability, safety and overall driving satisfaction that are synonymous with the brand.

    To compliment your Honda experience, we would like to introduce you to the Norton Way Honda service plan. Service Plan offers an easy and convenient way for you to budget for all of your vehicle’s scheduled servicing for the next, two, three or four years – frozen at today’s prices and without the worry of a bill to pay for.

  • A Honda Extended Guarantee is a great way to protect your car when your manufacturer’s warranty expires, which can extend the life of your vehicle. You have a choice of when you can take out your Extended Guarantee, either: when the 3 year or 90,000 mile manufacturer’s warranty expires or, if you have bought a Honda Approved Used Car and your 12-month Guarantee has expired. A Honda Extended Guarantee can help maintain ongoing service history, with genuine Honda parts, which could help you to improve the resale value of your car in the future.

  • It’s incredibly simple. We think you’ll find the decision is, too. It covers the difference between the original purchase price and the amount your insurance company will give you if the car is written off as a result of an accident or theft.

    GAP is available on new and used Honda vehicles (up to 9 years old). You can be covered for up to 3 years and we can arrange cover in the showroom instantly. Once the claim has been processed, we will send you a cheque for the difference. It’s flexible and convenient. Deferred policies are also available on request.

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